by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Nominal Rate of Return?The Nominal Rate of Return is the rate of return on an investment before factoring in the expenses related to inflations, taxes and investment fees. The dollar amount of the return is compared to the investment amount to get the nominal...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is a Capital Asset?A capital assets is any element of capital, either of equipment or of production, that will be used as part of the production process of another good and will become part of the capital of a company. Capital assets are not destined for direct...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Net Income?Net income of a business is calculated by deducting all expenses incurred in an accounting period from the total revenue earned in that same period.How is Net Income Used?The operating costs, interests, depreciation, taxes and all other expenses are...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What are Recast Financial Statements?Companies adjust their financial statements in order to reflect the actual financial benefits earned by the company. This is known as recasting, and the adjusted statements are known as recast financials. Companies recast their...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Return on Assets?Return on Assets or ROA measures the profitability of a business in relation to its overall assets. It allows a company to estimate how efficiently the assets of the company are being used for generating revenue. Return on Assets is a type of...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Yellow Book?The Yellow Book, formally the Generally Accepted Government Auditing Standards (GAGAS), is the name given to the standards promulgated by the Comptroller General (of the Government Accountability Office) for carrying out financial audits of...
